American Apparel is a clothing manufacture, designing, distributor, marketer and retailer based in Los Angel. Mr. Dov Charney was fired from American Apparel, the company he founded after allegations of sexual harassment and misuse of corporate funds were lodged against him. He was the CEO of American Apparel when he was suspended for 30 days. He was later terminated after months of suspension. He was replaced by Paula Schneider (Moor & Littler, 2014).
If organizational and personal goals would align each other, then people will be more committed towards the work and the organizations. If my personal goals are aligned towards the organizational goals I will be motivated to work and then it will be betterment for the whole organization. But, for American Apparel, Dov Charney’s core values neither matched with his organization nor his employees. His failure to lead the company and set an example has cost dearly to the company that once enjoyed a gross margin of around seventy percent in its retail sales. The company’s gross margin was around seventy percent while luxury brands Prada’s blended around sixty five percent. It is therefore safe to say that, the initial values of any company are the values that the founders and early employees believe in.
American Apparel’d downfall started when an article was published in claudineko.com. Dov Charney had masturbated twice in front of the young female journalist. She also mentioned that Dov Charney telling her that he was seduced because she told him that she liked dirty shoes. Lawsuits were filed against him for sexual harassment (Ko, 2004). These cases tarnished the reputation of the company. And now, after the termination of Dov Charney, and the downfall of a company that once peaked more than $ Six hundred millions in sales, have filed for bankruptcy for the second time endangering jobs of four thousand seven hundred employees across a hundred and ten stores (Watamanuk, 2016).
As the leaders so the followers, if the leader is so ineffective, the leader was up to his self-interest only which led the followers to do the same. A leader can only model the way but cannot do everything on its own, as Dov Charney was a dictatorial leader; he didn’t give any authority to his employees and took all the pressure which led the company to failure and huge loss. He failed to live up to his own company’s core value. American Apparel accused him of violating policies on harassment and retaliation against former employees after he was terminated. His employees filed multiple sexual allegations against him. His actions have led to the downfall of the company.
References
Ko, C. (2004). Meet your new boss. Jane, June/July, pp. 136Á141 .
Moor, L., & Littler, J. (2014). Fourth worlds and neo-Fordism: American apparel and the cultural economy of consumer anxiety. In Cultural Studies and Anti-Consumerism (pp. 192-215). Routledge.
American Apparel is a clothing manufacture, designing, distributor, marketer and retailer based in Los Angel. Mr. Dov Charney was fired from American Apparel, the company he founded after allegations of sexual harassment and misuse of corporate funds were lodged against him. He was the CEO of American Apparel when he was suspended for 30 days. He was later terminated after months of suspension. He was replaced by Paula Schneider (Moor & Littler, 2014).
If organizational and personal goals would align each other, then people will be more committed towards the work and the organizations. If my personal goals are aligned towards the organizational goals I will be motivated to work and then it will be betterment for the whole organization. But, for American Apparel, Dov Charney’s core values neither matched with his organization nor his employees. His failure to lead the company and set an example has cost dearly to the company that once enjoyed a gross margin of around seventy percent in its retail sales. The company’s gross margin was around seventy percent while luxury brands Prada’s blended around sixty five percent. It is therefore safe to say that, the initial values of any company are the values that the founders and early employees believe in.
American Apparel’d downfall started when an article was published in claudineko.com. Dov Charney had masturbated twice in front of the young female journalist. She also mentioned that Dov Charney telling her that he was seduced because she told him that she liked dirty shoes. Lawsuits were filed against him for sexual harassment (Ko, 2004). These cases tarnished the reputation of the company. And now, after the termination of Dov Charney, and the downfall of a company that once peaked more than $ Six hundred millions in sales, have filed for bankruptcy for the second time endangering jobs of four thousand seven hundred employees across a hundred and ten stores (Watamanuk, 2016).
As the leaders so the followers, if the leader is so ineffective, the leader was up to his self-interest only which led the followers to do the same. A leader can only model the way but cannot do everything on its own, as Dov Charney was a dictatorial leader; he didn’t give any authority to his employees and took all the pressure which led the company to failure and huge loss. He failed to live up to his own company’s core value. American Apparel accused him of violating policies on harassment and retaliation against former employees after he was terminated. His employees filed multiple sexual allegations against him. His actions have led to the downfall of the company.
References
Ko, C. (2004). Meet your new boss. Jane, June/July, pp. 136Á141 .
Moor, L., & Littler, J. (2014). Fourth worlds and neo-Fordism: American apparel and the cultural economy of consumer anxiety. In Cultural Studies and Anti-Consumerism (pp. 192-215). Routledge.
Watamanuk, T. (2016). The Rise and Eventual Downfall of American Apparel . Retrieved from highsnobiety.com/2016/02/17/americ...